Why don't the icons on the desktop display with a transparent background or drop shadow?

The icons on the desktop do not display with a transparent background or drop shadow even the Use drop shadows for icon labels on the desktop option is selected. Instead, the background of the icon and desktop text displays in the background color that is set in the Advanced options of the Appearance tab in Display Properties.

This symptom occurs if a background is specified or desktop item that uses Active Desktop has been added. Using a web page as active desktop, using a transparent or animated GIF image can cause this symptom. It also occurs when the Lock Web Items On Desktop option is enabled.

For more details, please refer to the following solution in Microsoft's technical support website.Article ID: Q305117Last Reviewed: August 10, 2001Title: Background Transparency and Drop Shadows Do Not Display on Desktop IconsURL: http://support.microsoft.com/default.aspx?scid=kb